A retirement savings account is one of the most sought-after benefits an employer can offer. However, plan sponsors can sometimes struggle to effectively communicate a plan’s benefits to employees in ways that boost engagement and enrollment. Don’t let your plan wither on the vine; follow these seven key steps plan sponsors can take to increase employee participation in your retirement plan.
Many plan sponsors lack the expertise to effectively manage their retirement plan and fulfill their fiduciary obligations to plan participants without some outside assistance. This is where a retirement plan consultant can be invaluable. Plan sponsors rely on consultants to provide knowledge and expertise. No two plans are alike—and the same can be said of retirement plan consultants. Learn more about why plan sponsors choose to hire a retirement plan consultant, as well as a few of the questions you’ll want to ask if you’ve determined that you need one.
There is no single, preset approach to designing an investment menu for defined contribution retirement plans. Accordingly, there are a plethora of highly contested ideas and theories around menu construction and how to maximize the value to participants through the plan’s investment offerings. One of the most prominent, and often most polarizing, menu design considerations is the superiority of active or passive management for plan investments. With a fundamental understanding of how active vs passive investing approaches work, as well as the pros and cons of each, plan sponsors can make more informed decisions in their menu construction.
At the end of each spring semester, millions of college graduates in the United States celebrate their college diploma in return for their hard work. With the hopes that their degree will bring a successful career, these graduates enter the workforce, often bringing with them tens of thousands of dollars in student loan debt. With 44.7 million Americans currently carrying an estimated $1.5 trillion in student debt, this financial burden will remain with many for decades. And as these graduates become part of the employee population of many companies, employers are now exploring their role on how they can assist with tackling this debt.
Many employer-sponsored retirement accounts offered its plan participants under financial turmoil access to their 401(k) or 403(b) retirement funds through a process known as a hardship withdrawal. Historically, the need has been determined based on all relevant facts and circumstances. However, on September 23rd, just 10 months after releasing proposed regulations, the IRS released its final hardship distribution regulations making retirement plan assets more accessible to those experiencing financial hardship. We explore these changes and what they mean for plan sponsors and their participants.